Measuring value and interest rate risk in retail financial markets such as the market for consumer deposits has proven to be a very difficult problem for financial firms. Standard models of value and interest rate risk (duration), based on the competitive market paradigm, are inappropriate in retail markets characterized by sluggish price and quantity behavior. Although the penetration of sophi...

During the global financial crisis (GFC), regulators and policymakers turned to deposit insurers, along with monetary fiscal measures, help restore market confidence promote stability. These events have focused attention on role of insurers their in banking system. Recent literature reveals that during GFC, insurance maintained stability successfully prevented customers doing ‘runs’ banks. The ...

The Mobile Banking Products and systems have a pivotal role to play in the financial deepening, especially in rural India. The mobile banking systems and products allow a customer to perform banking operations by making use of mobile phones. In most of the developing countries, especially in India, there is more number of mobile connections than bank accounts. The rural India is facing the prob...

The banking sector mirrors the larger economy – its linkages to all sectors make it a proxy for what is happening in the economy as a whole. Efficient functioning of banking sector is required for the growth of overall economy. Banking plays a silent, yet crucial role in our day-to-day lives. The banks work as financial intermediaries, pooling savings and channelizing them into investment, help...

Universalbanks have long played a leading role in Germany, Switzerland, and other Continental European countries. The principal financial institutions in these countries typically are universal banks offering the entire array of banldng services. Continental European banks are engaged in deposit taldng, real estate and other forms of lending, foreign exchange trading, as well as underwriting, s...

The Financial sector improves to introduce by the Indian Government during the early 1990s and the key parameters like globalisation and post -liberalisation of the world economy, Indian banking has begun to change itself. It is experiencing scenario to change known as ‘consolidation’ of Indian banking. In this paper interpret the financial performance of banking sector pre and post -merger the...

Traditional banking is built on four pillars: SME lending, access to public liquidity, deposit insurance, and prudential supervision. This vision has been shattered by repeated bailouts of shadow financial institutions. This paper puts “special depositors and borrowers” at the core of the analysis, provides a rationale for the covariation yielding the quadrilogy, and analyzes how prudential reg...

The apparent banking market failure modeled by Diamond and Dybvig [1983] rests on their inconsistently applying their " sequential servicing constraint " to private banks but not to their government deposit insurance agency. Without this inconsistency, banks can provide optimal risk-sharing without tax-based deposit insurance, even when the number of " type 1 " agents is stochastic, by employin...